Discrete Mathematics And Its Applications
8th Edition
ISBN: 9781260091991
Author: NA
Publisher: Mc graw hill
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Chapter 11.5, Problem 33E
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Calculus lll
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For each month of the year, Taylor collected the average high temperatures in Jackson, Mississippi. He used the data to create the histogram shown. Which set of data did he use to create the histogram?
A
55, 60, 64, 72, 73, 75, 77, 81, 83, 91, 91, 92\ 55,\ 60,\ 64,\ 72,\ 73,\ 75,\ 77,\ 81,\ 83,\ 91,\ 91,\ 92 55, 60, 64, 72, 73, 75, 77, 81, 83, 91, 91, 92
B
55, 57, 60, 65, 70, 71, 78, 79, 85, 86, 88, 91\ 55,\ 57,\ 60,\ 65,\ 70,\ 71,\ 78,\ 79,\ 85,\ 86,\ 88,\ 91 55, 57, 60, 65, 70, 71, 78, 79, 85, 86, 88, 91
C
55, 60, 63, 64, 65, 71, 83, 87, 88, 88, 89, 93\ 55,\ 60,\ 63,\ 64,\ 65,\ 71,\ 83,\ 87,\ 88,\ 88,\ 89,\ 93 55, 60, 63, 64, 65, 71, 83, 87, 88, 88, 89, 93
D
55, 58, 60, 66, 68, 75, 77, 82, 86, 89, 91, 91\ 55,\ 58,\ 60,\ 66,\ 68,\ 75,\ 77,\ 82,\ 86,\ 89,\ 91,\ 91 55, 58, 60, 66, 68, 75, 77, 82, 86, 89, 91, 91
In this problem, we consider a Brownian motion (W+) t≥0. We consider a stock model (St)t>0
given (under the measure P) by
d.St 0.03 St dt + 0.2 St dwt,
with So 2. We assume that the interest rate is r = 0.06. The purpose of this problem is to
price an option on this stock (which we name cubic put). This option is European-type, with
maturity 3 months (i.e. T = 0.25 years), and payoff given by
F = (8-5)+
(a) Write the Stochastic Differential Equation satisfied by (St) under the risk-neutral measure
Q. (You don't need to prove it, simply give the answer.)
(b) Give the price of a regular European put on (St) with maturity 3 months and strike K = 2.
(c) Let X =
S. Find the Stochastic Differential Equation satisfied by the process (Xt)
under the measure Q.
(d) Find an explicit expression for X₁ = S3 under measure Q.
(e) Using the results above, find the price of the cubic put option mentioned above.
(f) Is the price in (e) the same as in question (b)? (Explain why.)
Chapter 11 Solutions
Discrete Mathematics And Its Applications
Ch. 11.1 - Prob. 1ECh. 11.1 - Vhich of these graphs are trees?Ch. 11.1 - Prob. 3ECh. 11.1 - Prob. 4ECh. 11.1 - Prob. 5ECh. 11.1 - Prob. 6ECh. 11.1 - Prob. 7ECh. 11.1 - Prob. 8ECh. 11.1 - Prob. 9ECh. 11.1 - Prob. 10E
Ch. 11.1 - Prob. 11ECh. 11.1 - Prob. 12ECh. 11.1 - Prob. 13ECh. 11.1 - Prob. 14ECh. 11.1 - Let G he a simple graph with n vertices. Show that...Ch. 11.1 - Prob. 16ECh. 11.1 - Prob. 17ECh. 11.1 - Prob. 18ECh. 11.1 - Prob. 19ECh. 11.1 - Prob. 20ECh. 11.1 - Prob. 21ECh. 11.1 - A chain letter starts when a person sends a letter...Ch. 11.1 - A chain letter starts with a person sending a...Ch. 11.1 - Prob. 24ECh. 11.1 - Prob. 25ECh. 11.1 - Prob. 26ECh. 11.1 - Prob. 27ECh. 11.1 - Prob. 28ECh. 11.1 - Prob. 29ECh. 11.1 - Prob. 30ECh. 11.1 - Prob. 31ECh. 11.1 - Prob. 32ECh. 11.1 - Prob. 33ECh. 11.1 - Prob. 34ECh. 11.1 - Prob. 35ECh. 11.1 - Prob. 36ECh. 11.1 - Letnbe a power of 2. Show thatnnumbers can be...Ch. 11.1 - Prob. 38ECh. 11.1 - Prob. 39ECh. 11.1 - Prob. 40ECh. 11.1 - Prob. 41ECh. 11.1 - Prob. 42ECh. 11.1 - Prob. 43ECh. 11.1 - Prob. 44ECh. 11.1 - Draw the first seven rooted Fibonacci trees.Ch. 11.1 - Prob. 46ECh. 11.1 - Prob. 47ECh. 11.1 - Show that the average depth of a leaf in a binary...Ch. 11.2 - Build a binary search tree for the...Ch. 11.2 - Build a binary search tree for the words oenology,...Ch. 11.2 - How many comparisons are needed to locate or to...Ch. 11.2 - How many comparisons are needed to locate or to...Ch. 11.2 - Using alphabetical order, construct a binary...Ch. 11.2 - How many weighings of a balance scale are needed...Ch. 11.2 - How many weighings of a balance scale are needed...Ch. 11.2 - How many weighings of a balance scale are needed...Ch. 11.2 - How many weighings of a balance scale are needed...Ch. 11.2 - One of four coins may be counterfeit. If it is...Ch. 11.2 - Find the least number of comparisons needed to...Ch. 11.2 - Prob. 12ECh. 11.2 - The tournament sort is a sorting algorithm that...Ch. 11.2 - The tournament sort is a sorting algorithm that...Ch. 11.2 - Prob. 15ECh. 11.2 - Prob. 16ECh. 11.2 - Prob. 17ECh. 11.2 - The tournament sort is a sorting algorithm that...Ch. 11.2 - The tournament sort is a sorting algorithm that...Ch. 11.2 - The tournament sort is a sorting algorithm that...Ch. 11.2 - Prob. 21ECh. 11.2 - The tournament sort is a sorting algorithm that...Ch. 11.2 - Prob. 23ECh. 11.2 - The tournament sort is a sorting algorithm that...Ch. 11.2 - Prob. 25ECh. 11.2 - The tournament sort is a sorting algorithm that...Ch. 11.2 - Prob. 27ECh. 11.2 - Prob. 28ECh. 11.2 - Suppose thatmis a positive integer with m>2An...Ch. 11.2 - Suppose that m is a positive integer with m>2 An...Ch. 11.2 - Suppose that m is a positive integer withm= 2. An...Ch. 11.2 - Suppose thatmis a positive integer withm= 2....Ch. 11.2 - Prob. 33ECh. 11.2 - Prob. 34ECh. 11.2 - Suppose that m is a positive integer with m>2 An...Ch. 11.2 - Prob. 36ECh. 11.2 - Suppose that m is a positive integer with m>2 An...Ch. 11.2 - Suppose that m is a positive integer with m>2 An...Ch. 11.2 - Prob. 39ECh. 11.2 - Suppose that m is a positive integer withm= 2. An...Ch. 11.2 - Prob. 41ECh. 11.2 - Suppose that m is a positive integer with m>2 An...Ch. 11.2 - Prob. 43ECh. 11.2 - Prob. 44ECh. 11.3 - Prob. 1ECh. 11.3 - Prob. 2ECh. 11.3 - Prob. 3ECh. 11.3 - Prob. 4ECh. 11.3 - Suppose that the vertex with the largest address...Ch. 11.3 - Prob. 6ECh. 11.3 - Prob. 7ECh. 11.3 - Prob. 8ECh. 11.3 - Prob. 9ECh. 11.3 - Prob. 10ECh. 11.3 - Prob. 11ECh. 11.3 - Prob. 12ECh. 11.3 - Prob. 13ECh. 11.3 - Prob. 14ECh. 11.3 - Prob. 15ECh. 11.3 - Prob. 16ECh. 11.3 - Prob. 17ECh. 11.3 - a) Represent the compound propositionsandusing...Ch. 11.3 - a) Represent(AB)(A(BA))using an ordered rooted...Ch. 11.3 - In how many ways can the stringbe fully...Ch. 11.3 - In how many ways can the stringbe fully...Ch. 11.3 - Draw the ordered rooted tree corresponding to each...Ch. 11.3 - What is the value of each of these prefix...Ch. 11.3 - What is the value of each of these postfix...Ch. 11.3 - Prob. 25ECh. 11.3 - Prob. 26ECh. 11.3 - Prob. 27ECh. 11.3 - Prob. 28ECh. 11.3 - Prob. 29ECh. 11.3 - Prob. 30ECh. 11.3 - Show that any well-formed formula in prefix...Ch. 11.3 - Prob. 32ECh. 11.3 - Prob. 33ECh. 11.3 - Prob. 34ECh. 11.4 - How many edges must be removed from a connected...Ch. 11.4 - Prob. 2ECh. 11.4 - Prob. 3ECh. 11.4 - Prob. 4ECh. 11.4 - Prob. 5ECh. 11.4 - Prob. 6ECh. 11.4 - Prob. 7ECh. 11.4 - Prob. 8ECh. 11.4 - Prob. 9ECh. 11.4 - Prob. 10ECh. 11.4 - Prob. 11ECh. 11.4 - Prob. 12ECh. 11.4 - Prob. 13ECh. 11.4 - Prob. 14ECh. 11.4 - Prob. 15ECh. 11.4 - Prob. 16ECh. 11.4 - Prob. 17ECh. 11.4 - Prob. 18ECh. 11.4 - Prob. 19ECh. 11.4 - Prob. 20ECh. 11.4 - Prob. 21ECh. 11.4 - Describe the tree produced by breadth-first search...Ch. 11.4 - Prob. 23ECh. 11.4 - Explain how breadth-first search or depth-first...Ch. 11.4 - Prob. 25ECh. 11.4 - Prob. 26ECh. 11.4 - Prob. 27ECh. 11.4 - Use backtracking to find a subset, if it exists,...Ch. 11.4 - Explain how backtracking can be used to find a...Ch. 11.4 - Prob. 30ECh. 11.4 - Prob. 31ECh. 11.4 - A spanning forest of a graphGis a forest that...Ch. 11.4 - Prob. 33ECh. 11.4 - Prob. 34ECh. 11.4 - Prob. 35ECh. 11.4 - A spanning forest of a graphGis a forest that...Ch. 11.4 - Prob. 37ECh. 11.4 - Prob. 38ECh. 11.4 - Prob. 39ECh. 11.4 - Prob. 40ECh. 11.4 - Prob. 41ECh. 11.4 - Prob. 42ECh. 11.4 - Prob. 43ECh. 11.4 - Prob. 44ECh. 11.4 - Prob. 45ECh. 11.4 - Prob. 46ECh. 11.4 - Prob. 47ECh. 11.4 - Prob. 48ECh. 11.4 - Prob. 49ECh. 11.4 - Prob. 50ECh. 11.4 - Prob. 51ECh. 11.4 - Prob. 52ECh. 11.4 - Prob. 53ECh. 11.4 - Prob. 54ECh. 11.4 - Prob. 55ECh. 11.4 - Prob. 56ECh. 11.4 - Prob. 57ECh. 11.4 - Prob. 58ECh. 11.4 - Prob. 59ECh. 11.4 - Prob. 60ECh. 11.4 - Prob. 61ECh. 11.5 - The roads represented by this graph are all...Ch. 11.5 - Prob. 2ECh. 11.5 - Prob. 3ECh. 11.5 - Prob. 4ECh. 11.5 - Prob. 5ECh. 11.5 - Prob. 6ECh. 11.5 - Prob. 7ECh. 11.5 - Prob. 8ECh. 11.5 - Prob. 9ECh. 11.5 - Prob. 10ECh. 11.5 - Prob. 11ECh. 11.5 - Prob. 12ECh. 11.5 - Prob. 13ECh. 11.5 - Prob. 14ECh. 11.5 - Prob. 15ECh. 11.5 - Prob. 16ECh. 11.5 - Prob. 17ECh. 11.5 - Prob. 18ECh. 11.5 - Prob. 19ECh. 11.5 - Prob. 20ECh. 11.5 - Prob. 21ECh. 11.5 - Prob. 22ECh. 11.5 - Express the algorithm devised in Exercise 22 in...Ch. 11.5 - Prob. 24ECh. 11.5 - Prob. 25ECh. 11.5 - Prob. 26ECh. 11.5 - Prob. 27ECh. 11.5 - Prob. 28ECh. 11.5 - Prob. 29ECh. 11.5 - Prob. 30ECh. 11.5 - Prob. 31ECh. 11.5 - Prob. 32ECh. 11.5 - Prob. 33ECh. 11.5 - Prob. 34ECh. 11.5 - Prob. 35ECh. 11 - Prob. 1RQCh. 11 - Prob. 2RQCh. 11 - Prob. 3RQCh. 11 - Prob. 4RQCh. 11 - Prob. 5RQCh. 11 - Prob. 6RQCh. 11 - Prob. 7RQCh. 11 - a) What is a binary search tree? b) Describe an...Ch. 11 - Prob. 9RQCh. 11 - Prob. 10RQCh. 11 - a) Explain how to use preorder, inorder, and...Ch. 11 - Show that the number of comparisons used by a...Ch. 11 - a) Describe the Huffman coding algorithm for...Ch. 11 - Draw the game tree for nim if the starting...Ch. 11 - Prob. 15RQCh. 11 - Prob. 16RQCh. 11 - a) Explain how backtracking can be used to...Ch. 11 - Prob. 18RQCh. 11 - Prob. 19RQCh. 11 - Show that a simple graph is a tree if and Only if...Ch. 11 - Prob. 2SECh. 11 - Prob. 3SECh. 11 - Prob. 4SECh. 11 - Prob. 5SECh. 11 - Prob. 6SECh. 11 - Prob. 7SECh. 11 - Prob. 8SECh. 11 - Prob. 9SECh. 11 - Prob. 10SECh. 11 - Prob. 11SECh. 11 - Prob. 12SECh. 11 - Prob. 13SECh. 11 - Prob. 14SECh. 11 - Prob. 15SECh. 11 - Prob. 16SECh. 11 - Prob. 17SECh. 11 - Prob. 18SECh. 11 - Prob. 19SECh. 11 - Prob. 20SECh. 11 - Prob. 21SECh. 11 - Prob. 22SECh. 11 - Prob. 23SECh. 11 - The listing of the vertices of an ordered rooted...Ch. 11 - The listing of the vertices of an ordered rooted...Ch. 11 - Prob. 26SECh. 11 - Prob. 27SECh. 11 - Prob. 28SECh. 11 - Prob. 29SECh. 11 - Show that if every circuit not passing through any...Ch. 11 - Prob. 31SECh. 11 - Prob. 32SECh. 11 - Prob. 33SECh. 11 - Prob. 34SECh. 11 - Prob. 35SECh. 11 - Prob. 36SECh. 11 - Prob. 37SECh. 11 - Prob. 38SECh. 11 - Prob. 39SECh. 11 - Prob. 40SECh. 11 - Prob. 41SECh. 11 - Prob. 42SECh. 11 - Prob. 43SECh. 11 - Prob. 44SECh. 11 - Prob. 45SECh. 11 - Show that a directed graphG= (V,E) has an...Ch. 11 - In this exercise we will develop an algorithm to...Ch. 11 - Prob. 1CPCh. 11 - Prob. 2CPCh. 11 - Prob. 3CPCh. 11 - Prob. 4CPCh. 11 - Prob. 5CPCh. 11 - Prob. 6CPCh. 11 - Prob. 7CPCh. 11 - Given an arithmetic expression in prefix form,...Ch. 11 - Prob. 9CPCh. 11 - Given the frequency of symbols, use Huffman coding...Ch. 11 - Given an initial position in the game of nim,...Ch. 11 - Prob. 12CPCh. 11 - Prob. 13CPCh. 11 - Prob. 14CPCh. 11 - Prob. 15CPCh. 11 - Prob. 16CPCh. 11 - Prob. 17CPCh. 11 - Prob. 18CPCh. 11 - Prob. 1CAECh. 11 - Prob. 2CAECh. 11 - Prob. 3CAECh. 11 - Prob. 4CAECh. 11 - Prob. 5CAECh. 11 - Prob. 6CAECh. 11 - Prob. 7CAECh. 11 - Prob. 8CAECh. 11 - Prob. 1WPCh. 11 - Prob. 2WPCh. 11 - Prob. 3WPCh. 11 - DefineAVL-trees(sometimes also known...Ch. 11 - Prob. 5WPCh. 11 - Prob. 6WPCh. 11 - Prob. 7WPCh. 11 - Prob. 8WPCh. 11 - Prob. 9WPCh. 11 - Prob. 10WPCh. 11 - Discuss the algorithms used in IP multicasting to...Ch. 11 - Prob. 12WPCh. 11 - Describe an algorithm based on depth-first search...Ch. 11 - Prob. 14WPCh. 11 - Prob. 15WPCh. 11 - Prob. 16WPCh. 11 - Prob. 17WPCh. 11 - Prob. 18WP
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